During his campaign, Donald Trump indicated that white Americans were facing racism and emphasized that overturning Joe Biden’s “woke takeover” in Washington was a key goal for his second term.

Now that Republicans will control the White House and both chambers of Congress in 2025, the president-elect is well-positioned to fulfill his commitments to challenge corporations that engage with the federal government.

Among the initiatives facing scrutiny: Diversity, Equity, and Inclusion (DEI) programs.

“President Trump has made it clear that he intends to eliminate the woke and DEI nonsense that is affecting this country, and the American public has overwhelmingly supported that,” stated Trump spokesman Steven Cheung.

Trump is appointing loyal supporters who aim to reduce “woke” influence in America, such as Pete Hegseth, a Fox News host and decorated war veteran nominated as Secretary of Defense, alongside Brendan Carr, whom Trump has selected for chairman of the Federal Communications Commission.

Stephen Miller, a long-time advisor to Trump and set to be a chief policy planner in the upcoming administration, has spent the last four years pushing against “woke” corporations, initiating numerous legal actions.

“As the days go by and you observe the individuals he is appointing to various roles, organizations must take this seriously,” commented Allan Schweyer, a principal researcher at the business study group The Conference Board.

In his initial term, Trump utilized executive actions to prohibit the federal government and its contractors from holding racially “divisive” and “un-American” diversity training and established a hotline for whistleblowers to report their employers. His Labor Department investigated whether diversity initiatives aimed at increasing Black executives at firms like Microsoft and Wells Fargo contradicted federal laws against race discrimination.

“Much of what the President-elect plans to do can be accomplished through executive orders, without needing congressional consent. This could have significant implications,” Schweyer noted. “The new administration has numerous avenues to discourage DEI initiatives in the private sector.”

With various options at his disposal, Trump could implement extensive reforms.

According to the Project 2025 initiative, the Heritage Foundation urges the new administration to eliminate DEI terms from “every federal rule, directive, contract, grant, regulation, and piece of legislation currently in place.”

Other activists propose that the Justice Department should explore diversity-enhancing programs and abolish regulations instated during the Biden administration that prevent discrimination based on sexual orientation and gender identity.

Vice President-elect JD Vance, a strong opponent of DEI, previously co-sponsored legislation aimed at removing all federal DEI initiatives.

“President Trump initiated the fight against leftist racial ideologies in his earlier term,” remarked Christopher Rufo, a critic of DEI and a senior fellow at the conservative think tank Manhattan Institute. “Now he has the chance to finish the job.”

Trump’s Election Viewed as a Vote Against DEI

The killing of George Floyd in 2020 sparked a nationwide conversation about race, leading companies to commit to making their workforces and leadership more reflective of the communities they are part of.

Data investigations by YSL News reveal that workers of color are significantly underrepresented across all levels of authority in corporate America. One 2023 study indicated that white men fill 70% of executive positions in the country’s largest firms, and about 14% of these companies feature executive teams composed entirely of white men.

Supporters of DEI programs argue that these initiatives are essential for helping companies attract and retain a diverse workforce and fosters innovation. Business leaders, including JPMorgan Chase’s Jamie Dimon, have emphasized the benefits of diversity for commercial success.

However, four years after the pledges made in 2020, the political situation has shifted dramatically.

While there is widespread public support for corporate diversity initiatives, particularly among younger Americans, these efforts are increasingly facing criticism from courts and state legislatures. Right-wing organizations and political activists are advocating for “race-neutral” policies.

The 2023 Supreme Court ruling that eliminated the consideration of race in higher education has only intensified the attack on diversity programs in workplaces.

Public attitudes have also been altering. Some consumer boycotts have significantly impacted sales, leading brands like Bud Light and Target to withdraw from their marketing efforts aimed at the LGBTQ+ community. Notable companies such as Ford and Lowe’s have revised their diversity initiatives and reorganized their teams following campaigns spearheaded by anti-diversity activist Robby Starbuck.

Some companies have backed down at the mere suggestion of being publicly criticized, according to Starbuck. The social media activist, known for a meme featuring a grim reaper knocking on Fortune 500 doors, mentioned he is compiling a new list of targets as the holiday season approaches.

“We are winning the battle for public opinion, and that’s significant. This has a profound psychological impact on real-world matters,” stated Starbuck.

A recent survey by Pew Research Center shows that American workers’ views on the importance of DEI in the workplace have become more negative since last year.

Approximately half—52%—of workers now believe DEI in workplaces is mostly beneficial, down from 56% in February 2023. Meanwhile, the percentage of workers viewing DEI as detrimental has risen to 21%, an increase of five points from the previous year.

“Many people are fatigued by corporations engaging in political agendas. They simply want to shop without feeling lectured,” remarked Daniel Cameron, the former Kentucky attorney general leading 1792 Exchange, a conservative group opposing “woke capitalism.” “This is likely why we see a shift in public sentiment.”

Luke Hartig, president of Gravity Research, a company specializing in reputational risk, said that Trump’s significant election win fostered a narrative that this election was a verdict on DEI and other so-called woke policies.

For Amber Cabral, a former inclusion strategist at Walmart who worked exceptionally long hours to meet the demand for her consulting services after Floyd’s death, this narrative had severe repercussions.

As attacks on corporate DEI increased, clients expressed concern about becoming potential targets. Then Trump’s aggressive campaign statements instilled fear, prompting them to delay commitments until after the election, according to her.

With her small Atlanta firm losing nearly $500,000 in potential contracts, Cabral chose to close her business just hours following Trump’s acceptance speech. She noted that many colleagues share her experience.

“In this election cycle, DEI has been weaponized. The genuine purpose and potential benefits of this work have been completely disregarded,” Cabral declared.

DEI Advocates: Companies Will Not Retreat

While many corporate players prepare for challenging times ahead, Joelle Emerson, co-founder and CEO of the diversity consulting firm Paradigm, holds a more optimistic view. She believes the election’s impact and the prospect of another Trump presidency remain uncertain.

According to a survey by The Conference Board, over 60% of corporate executives view the current political landscape for corporate DEI efforts as extremely challenging, with most expecting ongoing or increased resistance.

Nevertheless, fewer than 10% of organizations plan to decrease their DEI efforts in the next three years. Advocates for DEI assert that employees demand diverse and inclusive environments, and companies will also face pressure from progressive movements in the coming four years.

“Rather than abandoning diversity, equity, and inclusion, I believe companies will adapt,” Emerson suggested.

In light of increasing challenges, business leaders have fortified their DEI initiatives to withstand legal challenges and public critique.

Efforts like hiring targets, which conservatives argue are unlawful quotas, along with executive bonuses linked to DEI (Diversity, Equity, and Inclusion) objectives, are facing scrutiny.

A recent Conference Board survey revealed that over half of senior executives have modified their terminology regarding DEI in the last year, with an additional 20% contemplating changes. An increasing number have also omitted references to diversity objectives in their shareholder reports.

Currently, companies are less likely to publicly advertise their diversity initiatives. Major corporations like Walmart and Salesforce opted not to provide executives for discussions regarding their DEI efforts.

Microsoft directed YSL News to their latest diversity and inclusion report, stating, “Our commitment to D&I is unwavering as it brings about transformative solutions to the intricate challenges faced by our customers, partners, and the globe.”

Emerson noted that while many corporations may shy away from the intensely polarized discussions surrounding DEI, they are not completely abandoning the initiatives, which often include expanding candidate pools and establishing mentorship and coaching programs for everyone.

“Most leaders I converse with acknowledge that embracing diversity and encouraging inclusion is vital for future business outcomes. They aspire to broaden their recruitment efforts, to identify and promote the most capable individuals, and to foster environments that enable optimal performance,” she stated.

Franklin Turner, co-chair of the government contracts and global trade practice at the McCarter & English law firm, represents significant businesses as they navigate a transition from a pro-DEI administration to one that is less supportive.

According to Turner, the Trump administration will heighten scrutiny on corporations that depend on federal funding, leading some to revise policies or training materials. However, he does not anticipate drastic overhauls in practices.

“I don’t foresee executives at major companies—many of whom I collaborate with—deliberately pulling back,” Turner mentioned.

David Glasgow, executive director of the Meltzer Center for Diversity, Inclusion, and Belonging at NYU School of Law, hopes to witness organizations becoming more proactive in the coming years.

“I expect to see many organizations take initiative rather than merely reacting,” Glasgow remarked. “The focus on DEI will persist. While it may require rebranding or careful communication, the importance of creating respectful and inclusive workplaces where everyone has equal opportunities cannot be completely disregarded, regardless of antagonistic governmental administrations.”

(This article has been updated to clarify the attribution of a statement included in an earlier version.)